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SARS asks six questions when considering a tax debt write-off - answer them yourself to determine your chance of success

by , 25 June 2014
If your company is struggling to pay SARS the tax debt it owes, there's a way out!

You can apply for a tax debt write-off. With a tax debt write-off, SARS reverses a tax debt in whole or in part.

But before you apply, you have to know that when coming to a tax debt write-off decision, SARS determines if the outstanding debt is uneconomical to pursue. To do so, it considers the answers to these six questions.

Our experts recommend you answer them for yourself to determine your chances of success when it comes to SARS writing off your debt...

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Want to apply to SARS for a tax debt write-off? Answer these questions first

Experts behind the Practical Tax Loose Leaf Service say the revenue service will ask these six questions when it determines whether or not to write-off your tax debt:

  1. How much tax do you owe?
  2. How long has this tax been outstanding?
  3. What steps has SARS already taken to recover your debt and how much has this cost?
  4. What will the further cost be if SARS continues its action against you?
  5. What are the chances SARS will recover costs awarded in its favour?
  6. What legal opinion has SARS received regarding the recovery of your debt?

In this article, our tax experts explain that SARS will only write-off your tax debt temporarily if it's uneconomical for it to chase the money. This is when the total cost of recovering the tax debt will exceed the amount that it'll recover from you now.

Knowing the questions that SARS asks when it makes a decision about your tax debt write-off request will help you weigh up your chances of success or whether or not you qualify for a tax debt write-off.

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